This essay business has a total of 1174 words and 6 pages.
Area 1: Darrell Lea Chocolate Shops is an Australian business that makes and sells chocolate, liquorice and other confectionery, such as their famous Rocklea Road. Darrell Lea offers several confectionery product lines ranging from box chocolates, to fresh licorice, to sugar-free products and fundraising bars. The main aim of Darrell Lea is to sell its products at a profit. During peak times, Darrell Lea employed up to 1,200 people. The innovation used by Darrell lea was to introduce new products and flavours of their already established product line for example the Rum and Raisin Rocklea Road.
Darrell lea started as a small, local business being independently run and operated. The legal structure of the business was a sole trader. The owner was responsible for the majority of the decisions and provided the finance. It had a small market share due to it only selling in the local area.
Darrell lea ended as a large, transnational corporation with its home base in Kogarah, NSW. Darrell lea sells to stores overseas in New Zealand, South Africa. The legal structure of the business is an incorporated Private business although it briefly became public in 1968 when it was listed on the stock exchange. An incorporated private business means that the business and the shareholders are separate legal entities with limited liability but the number of shareholders in the business is less than 50. The industry classification of the business is secondary as it takes the output of firms in the primary sector and processes them into finished products.
The purpose of this short report is to explain the internal and external influences that have impacted the operation of Darrell Lea and the effects on the stakeholders.
Internal Influences: Management and Product
Management: Management has an important role in a business in making decisions and keeping up to date in advancements in technology and keeping up with globalisation. This is one of the influences that affected Darrell Lea in that managers did not invest in the latest manufacturing equipment at a time when more and more confectionary is made overseas, so their productivity dropped. If they had improved manufacturing methods productivity would have increased. Many market leaders are vulnerable to the threat that comes from failing to relook at their business models. Simply reviewing the four Ps is a good way for any business to refresh and stay relevant. Market leaders that fail to embrace change are increasingly less profitable than smaller challenger brands. The difficulty for Darrell Lea was they were neither big and powerful, nor innovative enough to challenge.
Product: Mega trends like multiculturalism, gourmet-tisation of food products, better-for-you choices and social issues like fair trade today shape what we choose to eat.
For the last couple of decades there?s been little in the way of new thinking at Darrell Lea beyond fruit-flavoured licorice and changing the shape of the logo from a triangle to a thought bubble. Recently spending six figures on research that came up with a new tagline, ?85 years of creating sweet magic?, simply reinforced a backward-looking management mindset at Darrell Lea.
As Max Brenner?s website proclaims, ?Chocolate is not just about taste?, it?s also about fashion. From Mexican spicy chocolate and hot chocolate shots to chocolate souffl?s and tiramisu, Australians are spending more money on chocolate than ever before as brands come up with new ways to tempt them.
External: Legal and Competitive Situation
Legal: There are laws in business that companies need to abide by in order not to receive fines and law suits. Darrell lea was taken to court by Cadbury over Darrell Lea?s use of the colour purple on its packaging. This legal battle went on for 5 years as Cadbury alleged that the use of this colour purple was misleading and deceptive conduct under the Trade Practices Act. In April 2008 the Australian judge ruled that Darrell Lea was not trying to fool customers. This court hearing took up Darrell Lea?s Time and money and had a major influence over the companies operation at the time.
Competitive Situation: Factors influencing a business?s competitiveness is determined by the number of competitors, marketing strategies, price and local and foreign competition. The competition in the chocolatiers industry is high with many competitors such as Cadbury, Mars and Lindt. The marketing strategies used by Darrell Lea were poor and the Darrell lea did not stand out among their competitors, nothing differentiated
Topics Related to business
Darrell Lea, Cadbury, Marketing strategy, Marketing, Brand, Lea, Liquorice, kogarah nsw, darrell lea, chocolate shops, legal entities, transnational corporation, advancements in technology, sugar free products, legal structure, sole trader, liquorice, industry classification, peak times, australian business, finished products, private business, licorice, area 3, product management, management management, flavours
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